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Public Accounts Committee - Approved Committee Minutes - 7 January 2013

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Public Accounts Committee

Record of Meeting

Date:   7th January 2013 Meeting No:  18

 

Present

Deputy T. Vallois, Chairman Senator S. C. Ferguson, Deputy R. Rondel

Deputy G. Baudains

Mr S. Haigh (To item 9)

Apologies

Mr I. Ridgway Mr J Mills

In attendance

Deputy J. Le Fondre

Deputy J. Young

Mr M. Robbins, Officer to Public Accounts Committee

 

Ref Back

Agenda matter

Action

 

1.  Records of Meetings

The records of the meetings held on 10th, 18th and 21st December 2012 were approved.

MR

 

2.  Gigabyte Jersey

The  Committee  discussed  the  £41  million  investment  in  Gigabyte Jersey and the relatively small number of people who were understood to have taken up the service. It was considered that a review would establish whether value for money had been achieved. As taxpayer's money  had  been  invested  in  this  scheme,  it  was  agreed  that  the Committee was to refer the topic to the new Comptroller and Auditor General on appointment.  

 

 

3.  Doctors Rebates

The review into the rebate system for referrals made by Doctors had not been scoped and it was decided to defer that review until March.

MR

Item 5 10.12.12

4.  Comptroller and Auditor General: Recruitment

The Chairman gave an oral update on the progress of the recruitment of a new Comptroller and Auditor General, informing the Committee that P138/2012,  which  recommended  the  new  Comptroller  and  Auditor General to the States for approval, had been lodged 15 days late and therefore would not be debated until 29th January 2013. This meant that the new Comptroller and Auditor General was not expected to take up the post until March 2013.

The Chairman provided information relating to the applicants for the post and it was decided that the Committee was to provide a comment endorsing the proposition for the new post holder. It was also agreed

 

 

that the Chairman was to request that the States suspend Standing Order  26  (3A)(a)  which  required  a  four  week  lodging  period  for P138/2012, allowing it to be debated on 15th January 2013.

TV

Item 9 10.12.12

5.  Grants and Subsidies

The Committee noted an update relating to the review into grants and subsidies. Following the meeting in December 2012, arrangements had been made with the lead member to consider the scoping documents, terms of reference and a timeline at the beginning of January 2013. In view of the recognised  workload associated with starting numerous reviews at a similar time, along with the lead member being out of the Island during the interim period, the timing had fitted very well with the overall project planning for all the reviews. It was expected that the scoping would be completed within two weeks.

It was understood that the Education and Home Affairs Scrutiny Panel were considering a review into aspects of higher education grants. This was to be checked to ensure that there was no duplication of effort.

JM / MR

MR

 

6.  JT Preference Shares

The Committee discussed the redemption of the States 9 per cent Preference Shares in the JT Group Limited. It was understood that they were worth £30 million but that there was an intention to dispose of them for £20 million. There was a question as to whether the sale was value for money' for the taxpayer. The Committee recalled that this had been discussed during the Medium Term Financial Plan debate in the States and required the transcripts of the debate be circulated.

As the Committee was at full capacity with reviews at that time, it was agreed  that  the  Chairman  would  discuss  the  matter  with  the  new Comptroller and Auditor General when she took up her appointment.

MR

TV

 

7.  Energy from Waste Plant

The  Committee  noted  correspondence  which  had  been  sent  from Deputy J. Young to the Chairman relating to the cost of running the new Energy from Waste Plant and associated costs. It was understood that waste was now costing £146 per ton to process. The Committee was also informed that initial quotes for the building of the plant had been received for £66 million but that the accepted quote from a different provider had cost £108 million. Due to the current commitments of the Committee, the Chairman was to discuss this with the new Comptroller and Auditor General when she took up her appointment.

 

Item 1 18.12.12

8.  Procurement

The Committee noted that the scoping documents and the one term of reference had been sent to the Chairmen's Committee for approval. The  aim  of the  review  was  to  examine,  at  high  level,  whether the Procurement Unit was achieving the strategic objectives initially laid out for it and whether what was being provided was value for money. If not, why not.

It was agreed that a briefing from the department head would assist the Committee in preparation of its questions for a public hearing. The facts and  figures  needed  to  be  obtained  from  the  Department.  The Committee  recognized  that  unless  there  was  evidence  to  support allegations, Members were to avoid making accusations of wrongdoing

MR

 

within the procurement process and that at this point there was no evidence to support any such allegations.

This review was to focus on the measurement processes within the unit. Hearings were to be arranged for the middle of February 2013.

MR

 

9.  Machinery of Government Review

The Committee welcomed Deputy J. Le Fondre and Deputy J. Young who gave a presentation on the work of the Machinery of Government Review Sub-Committee. The Chairman and Deputy Baudains declared an interest as they were serving on the Sub-Committee.

The presentation reflected the contents of the interim report dated 18th December  2012  on  the  subject.  The  presentation  presented considerations, in principle, of States Members sitting as non-executive members of Ministerial boards.

The Committee agreed that the outstanding problems included:

  • the quality of leadership
  • the powers of the Chief Minister
  • collective responsibility
  • corporate sole and
  • the Troy Rule

It was considered that the report had not dealt firmly enough with any of these items.

The Committee was particularly concerned that the matter of Scrutiny had been dealt with in the report as an inconsequential bolt on' to Ministerial Government, rather than as an integral and indispensable part of the machinery of government. The report also failed to deal with the framework of the role of Ministers or other Members of the States.

It  was  agreed  by  all  that  following  the  publication  of  the  Electoral Commission  Final  Report,  should  there  be  a  move  towards  the reduction of States Members to 42, the recommendations within the Machinery of Government report would be unlikely to work as proposed.

The Committee thanked the Deputies for their attendance.

 

Item 11 10.12.12

10. Property Holdings

The  Committee  recalled  that  it  had  agreed  to  extend  the  initially proposed review into Lime Grove House: failure to acquire for use of Police  Headquarters  into  a  review  into  Property  Holdings.  The Committee was reminded of the observations by the former Comptroller and Auditor General in his reports relating to Lime Grove House dated May 2012 and that it was the role of the Committee to follow up the Comptroller and Auditor General's recommendations. It was recognized that  this  matter  was  of  significant  interest  to  the  Committee  and therefore it was decided that all members of the Committee must be present to discuss the subject. The matter was deferred to the next meeting.

MR

Item 10 10.12.12

11. Financial Report and Accounts 2011.

Further amendments were discussed to the draft report. It was agreed

 

 

that the Chairman was to meet with the officer to conclude the drafting process. A discussion was held in relation to the section relating to grants  following  the  suggestion  that  the  whole  section  should  be significantly shortened and left to the proposed review into grants and subsidies to deal with. This was not agreed. The report was to remain as per the draft.

MR

Item 1 18.12.12

12. Canbedone Productions Limited Grant

Following an update of the review, the Committee agreed to hold Public Hearings  from  12  noon  on  25th  January  2013.  Full  files  of

documentation were to be provided to Members.

MR

 

13. Future Meeting

The Committee agreed that the next scheduled meeting was to be at

12.30 pm on Monday 4th February 2013 in the Blampied Room of the States Buildings.

MR